What are the various challenges in employee retention? Which employee retention strategies are effective in the management of human capital?

1. What are the various challenges in employee retention?
Which employee retention strategies are effective in the
management of human capital? Quote at least two research
studies on the issue.
Assignment Topic:

2. Introduction
 Employee retention is directly proportional to employee engagement.
If the employee engagement is good and high in rate, then the
retention rate of an organization will be high.
 There is a huge competition in the market for labor/employees.
Businesses everywhere are looking to expand and are open for new
positions.
 The challenging role of a HR is to keep the right resources in the right
jobs while also acknowledging that employees are also capitalists.
 Effective employee retention is a systematic effort by employers to
create and foster an environment that encourages current employees
to remain employed with the policies and practices in place that
address their diverse needs.

3. Introduction
 “The best employers inspire and maintain a passion for
outstanding achievement. They not only pose sharp focus and
clarity but also share it simply and effectively with the
employees.“
 Problems crop up when individuals have nothing creative and
challenging to do. So, an organization, which provides a
working environment to the employee with complete work
engagement, will have a high retention rate.

4. Key point to keep employees engage
1. Future plans for an employee
2. Interesting job for an employee
3. Work free environment
4. Appreciating employee with awards & Rewards
5. Dedication towards work
If we focus on employee engagement then it is for sure that they will
retain with the organization for a longer period of time. By
understanding what engages employees can help during all phases of
the employment, from recruitment to training to performance
assessment and beyond. And it is also very easier to retain employees
who are engaged and committed to the organization’s success.

5. Challenges in Employee Retention
1. Monetary dissatisfaction
 Every employee has high salary expectations and this is one of the
major reasons for an employee to look for a change in job.
 Retention becomes a problem when an employee quotes an
exceptionally high figure beyond the budget of the organization
and is just not willing to compromise.
 An individual should not be adamant on a particular figure,
otherwise it becomes difficult for the organization to retain him.
Remember there is a room for negotiation everywhere.

6. Challenges in Employee Retention
2. Job opportunities are high
 There is a cut-throat competition to attract the best talent in the
market
 Availability of such lucrative offers makes it difficult to retain good
resources for long.
3. Getting board in a short span of time or No Job Rotation
 Any employee gets bored, if he/she does the same job for
years together.
 It becomes really difficult for the HR Department to find out
what exactly is going on in the minds of the individual. An
individual should voice his opinions clearly to make things
easier for the management.

7. Challenges in Employee Retention
4. Hiring the wrong candidate
 Recruitment plays an important role, which is the future of any
organization. A right candidate hiring will give a good future and a
wrong candidate hiring will give a bad future.
 Candidate might not be proficient in branding but would simply say
a yes to impress the recruiter and grab the job. It is only later do
people realize that there has been a mismatch and thus look for a
change.
 Problems arise whenever a right person is into a wrong profile. An
individual loses interest in work whenever he does something out
of compulsion.

8. Challenges in Employee Retention
5. Unrealistic expectations of employees
 It is not possible for an organization to meet the
expectations of all the employees. There is actually no
solution to unrealistic expectations.
 Individuals from different backgrounds come together in an
organization and minor misunderstandings might arise but
one should not make an issue out of it. Sometimes, when the
unrealistic expectations of the employees are not met, they
look for a job change.

9. Effective Employee Retention Strategies
 One of the key worries of any organization is how to retain
employees, more so the deserving employees.
 Employee Retention is defined as an organization’s ability to
retain its employees. It can also be called as a process, in which
the resources are motivated and encouraged to stay in an
organization for a longer period of time for the sustainability of
the organization.
 It facilitates loyal employees sticking to the company for a
longer duration, which in turn will benefit both the
stakeholders.

10. Effective Employee Retention Strategies
1. Know the cost
2. Focus on employee orientation
3. Training for managers
4. Hire the right people
5. Individual development
6. Employee recognition
7. Find the reason why employee are leaving

11. Case study on employee retention
1. Case study on Netflix
1.1 Take care to only hire “A” players by focusing on character in
the hiring process
1.2 Treat employees like adults
1.3 Develop great manages

12. Case study on employee retention
2. Case study on Hyatt Hotels
2.1 Integrate well-planned retention initiatives into your core
business strategy
2.2 Empower employees by offering support and security
2.3 Develop and promote existing employees

13. Conclusion
 As you can see, effective employee retention strategies come in
all shapes and will look different depending on a variety of
factors including your industry, the size of your organization, as
well as its culture and demographics.
 However, certain themes appear over and over again, including
trust, collaboration, values and purpose, personal development,
and authentic communication. Use these ideals as a guiding
principle when developing or refreshing your retention
strategy.

14. Online Reference
 https://snacknation.com/blog/how-to-retain-employees/
 https://www.sumhr.com/effective-employee-retention-strategies-
company-follow/
 https://www.managementstudyguide.com/employee-retention-
strategies.htm
 https://www.slideshare.net/vkumarab/a-case-study-on-employee-
retention-strategies
 https://www.0researchgate.net/publication/256636823_KEY_FACTOR
S_AND_CHALLENGES_FOR_RETENTION_OF_EMPLOYEES_IN_A_PUB
LIC_SECTOR_TELECOM_ENTERPRISE_A_CASE_STUDY_OF_MAHANA
GAR_TELEPHONE_NIGAM_LIMITED_DELHI
 https://www.tutorialspoint.com/employee_retention/employee_rete
ntion_quick_guide.htm